Cardano developers integrate DJED into DeFi sector
Cardano ecosystem developers announced the release of the Liqwid product. This decentralized finance (DeFi) protocol has successfully launched a marketplace for borrowing and lending the stabelcoin DJED. This stable coin, built on the basis of the blockchain sought. The project uses an algorithmic design that uses smart contracts to provide price stabilization. Analysts assured: this tool could prove useful in the DeFi sector.
Lending and borrowing through DJED is intended to benefit the stackblock itself and the entire Cardano ecosystem. First, it will create additional liquidity, which is important for long-term success. DJED can be easily exchanged for other cryptocurrencies or fiat currencies, as well as used for a wide range of decentralized finance (DeFi) applications.
Second, lending and borrowing with DJED will help stabilize the value of the coin and its peg to the price of the U.S. dollar (USD). When demand for DJED increases, the asset is minted and more Stablecoins are sold, this helps keep the exchange rate at the same level. When it goes down, the opposite happens.
Third, banding with DJED can provide an additional revenue stream for Cardano users. By lending their DJEDs, users can earn interest on assets and borrowers can access capital without having to sell the cryptocurrency.
The main difference between DJED and other stabelcoins is in the algorithmic design and intended use on the Cardano network. Unlike other digital coins, which rely on centralized organizations to maintain price stability, DJED uses smart contracts to automatically adjust supply and demand. This allows for decentralization and keeps the value pegged to the U.S. dollar (USD).
